Liberty Aerospace Inc. and Anyang Angel Aero Science and Technology Development Co., Ltd. (3A) announced today the launch of a 600 aircraft manufacturing agreement and that 3A has initiated the construction of a new factory at the Anyang Airport in Henan designed for the manufacturing of the Liberty XL-2. The new plant is part of a definitive contract to purchase and build 600 Liberty XL-2 aircraft for use in the Peoples Republic of China. With a base plan of 600 aircraft, 3A and Liberty Aerospace expect this number to be increased to 800 in anticipation of the opening of the air space in 2010.  

The factory, when complete, will be capable of manufacturing 100 aircraft per year – utilizing processes from carbon manufacturing to final assembly. Prior to factory completion, 3A will take delivery of aircraft built in the United States to meet the current demand for training. Aircraft purchased and built by 3A will be utilized at the growing Science and Technology University and within their current flying school located at Anyang. 3A is owned 50% by the Anyang Economic and Technology Development Company.  

The contract, which had been in negotiations for over a year, differs materially from some other announced foreign aviation agreements in that the agreement is for aircraft built in the China facility to be used in the China aviation community as apposed to an agreement to build in China for shipment to the United States. Further, the aircraft to be built in China, the XL-2, meets the full US Federal Aviation Part 23 airworthiness requirements as well as the Peoples Republic of Chinas Civil Aviation Authorities Certification requirements.  

"We are extremely excited to work with Anyang Angel Areo and to have a role in the fast growing China aviation market," commented Keith Markley, President and CEO of Liberty Aerospace.  

The Liberty XL-2 is fully certified by the FAA under FAR 23 Day/Night IFR.  The XL-2 received the Chinese Type Certificate on May 9th, 2007 and is certified to operate on both 95LL and 100LL AvGas as used in China and Russia.  

Compared with other FAA Certified FAR 23 aircraft of this size, the Liberty offers a much lower acquisition cost and has a much lower Direct Operating Cost.